Modes of extinguishment of a contract of agency

Dear PAO,

I named my boyfriend my attorney-in-fact for the intended sale of my inherited property. We have been having personal issues for several months now, which led me to have trust issues with him. I only recently remembered about the SPA, which I signed naming him as my attorney-in-fact. So, I am considering terminating said assignment. What are the ways by which I can terminate the special power of attorney that I gave him?

Khloe

Dear Khloe,

It appears that what you have with your boyfriend is a contract of agency, which is, under the law, an agreement whereby «a person binds himself to render some service or to do something in representation or on behalf of another, with the consent or authority of the latter.» (Article 1868, New Civil Code of the Philippines)

Article 1919 of the New Civil Code enumerates the modes of extinguishment of a contract of agency, viz.:

«Art. 1919. Agency is extinguished:

Advertisement

»(1) By its revocation;

"(2) By the withdrawal of the agent;

"(3) By the death, civil interdiction, insanity or insolvency of the principal or of the agent;

"(4) By the dissolution of the firm or corporation which entrusted or accepted the agency;

Advertisement

"(5) By the accomplishment of the object or purpose of the agency;

"(6) By the expiration of the period for which the agency was constituted."

Taking the foregoing into consideration, and given that you are the principal of the aforementioned contract, you may freely initiate the termination of the appointment of your boyfriend as your attorney-in-fact for the intended sale of your inherited property by revoking such appointment. This may be done either expressly or impliedly. The New Civil Code specifies that:

«Art. 1920. The principal may revoke the agency at will, and compel the agent to return the document evidencing the agency. Such revocation may be express or implied. x x x

Advertisement

»Art. 1923. The appointment of a new agent for the same business or transaction revokes the previous agency from the day on which notice thereof was given to the former agent, x x x

«Art. 1924. The agency is revoked if the principal directly manages the business entrusted to the agent, dealing directly